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Tips to keep your small business cash 'flowing'

Tips to keep your small business cash 'flowing'

Tips to keep your small business cash 'flowing'

(NC)-Looking for ways to improve your company's cash flow? No small business can thrive without cash flow to pay bills, suppliers, employees and - you! One of the best ways to maintain positive cash flow is with well-managed accounts receivable. Keeping track of who owes money and due dates keeps your business efficient.

Here are a few tips to keep your accounts receivable - and your client relationships, in top shape.

. Know your customers. Do some research before granting credit to a new client. This may involve talking to a credit rating agency to help determine a client's credit history.

. Talk to your clients. If there is a concern about a late payment, call your client. If there was a problem with your product or service, it provides you with an opportunity to correct it and satisfy your customer.

. Set parameters. If your clients know at the outset what the terms of payment are, they are more likely to follow them.

. Keep good records. No business owner likes additional paperwork, but keeping track of who owes you money - and who you owe money to, is critical to maintaining a good client relationship.

. Consider offering a discount for early payment of bills or an interest penalty for late payment to encourage customers to pay you promptly.

. Know what your customer wants so you can deliver it. For some it may be your superior product, personal service, or flexibility. This helps to establish long-term business relationships that can weather the storm of the occasional difficulty with invoices.

"Effectively managing your business borrowings helps to manage your overall business costs," says Diane Giard, Vice-President, Small Business at Scotiabank. "With a little understanding and negotiation, you'll be able to maintain strong client relationships and keep your cash flowing."

Scotiabank has the knowledge and resources to help small business owners succeed. With a small business expert in every branch, Scotiabank is here to help small business owners find the money to reach their goals. For more information, see your local branch or visit: www.scotiabank.com/smallbusiness.

- News Canada